CHAPTER 5 DATA ANALYSIS AND PRESENTATION
5.5. QUALITATIVE ANALYSIS OF DATA
5.5.1. Discourse analysis
157
5.5. QUALITATIVE ANALYSIS OF DATA
158 Table 5.46: Agreement Matrix: Benefits of globalization
Respondent Response Comments/Analysis of
Responses
Customer 1 “Through globalization, most poor people can now afford to buy cheap clothes...look at the case of cheap clothes from China. One cannot differentiate the rich from the poor any more. We all look the same. Besides, local companies are in the habit of profiteering. Their products are very expensive despite being of high quality. I therefore prefer products from China even though they do not last...at least I can afford to buy clothes out of my meagre financial resources.”
Statements such as that above reflect how consumers, especially the poor view the immediate benefits of globalization. However, almost all company representatives interviewed had a different view of the benefits of globalization.
Company executive (clothing store)
“Our industry has collapsed because of the entry of companies from the Asian countries. They have literally invaded the market. Their products are cheap though endurable. This unique combination of attributes is most preferred by the local consumer market; the majority of who are poor. They are mostly persuaded by price rather than quality. Our local industry cannot compete with these companies because of our high costs of production.
Electricity and water charges are high.”
The major challenge to the local industry is to achieve viability in the face of globalization. While consumers celebrate diversity through globalization, the industry bemoans lack of viability due to unfair competition and the loss of employment and revenue. From the industry’s perspective, globalization has created few benefits, among them, access to global markets and increased foreign direct investment (FDI).
Young Marketing Executive (clothing retail company)
“We are now able to sell all our products across all the countries of the world. All we need to do is to compete on price and quality.... and as such we have made deliberate efforts to have all our products ISO certified. In that respect, our products have been well received in many countries within the region and beyond including the highly competitive market of South Africa. We need to give thanks to the internet!”
This was an exceptional case of a company which has invested in technology unlike many companies in the sector which still rely on traditional methods of selling. On the other hand, policy formulators in government ministries seemed to agree with the sector’s concerns.
Most of the officials interviewed attributed the collapse of the clothing and textile sector to the entry of smuggled second hand clothing and poor policies for the protection of the industry.
Government
Official “Our local industry has not benefited from globalization. It is not only a challenge to Zimbabwe alone, but all the developing economies of the world. Globalization seems to benefit the developed world alone at the expense of the struggling least developed countries; the majority of which are in Africa. We have become a dumping ground for all the cheap products from developed countries while our local companies face extinction”.
Such sentiments often lead the government to instituting protectionist policies in order to safeguard the interests of local companies. Many countries in Southern Africa have protected their vulnerable markets through such strategies.
Source: Primary Data
159 5.5.1.2: Challenges of globalization of markets
Since reviewed the literature noted that companies from developing countries are finding it increasingly difficult to retain a competitive edge in a progressively global market place, the second theme of the research addressed the challenges of the globalization of markets. Challenges of globalization were highlighted in the responses obtained from company representatives as well as government officials. In the case of Zimbabwe, the challenges cited were many though they tended to focus on two important issues of the collapse of the local clothing sector and the loss of employment. Some of the responses with respect to challenges of globalization of markets are summarized on Table 5.47 below:
Table 5.47: Agreement Matrix: Challenges of globalization of markets
Respondent Response Comments/Analysis of Responses
CEO-leading clothing manufacturer
“The challenge for us is in how to devise strategies in order to remain viable.
Globalization is here to stay...and we need to find a way of co-existing with it without closing our companies in protest or failure. It is a futile attempt to resist it.
However, many companies continue to close. We are also struggling. Therefore, one can only conclude that the closure of companies in the clothing and textile sector is a direct result of globalization.”
In support of sentiments expressed earlier by other representatives of companies in the sector, the Chief Executive Officer went on further to state that:
“The major challenge of globalization is that it seems to benefit companies in the developed world. We cannot compete with companies from such countries. We are therefore at the mercy of these companies.”
The admission that globalization has contributed to the closure of many companies is a common theme shared by many in the industry. This has unfortunately led to complacency to many executives as they transferred the fate of their companies to globalization.
Many companies’ representatives shared this view. It creates serious challenges to sector as many companies face extinction.
Government
Official “We are somehow caught in between. We need FDI and therefore we have to attract as many foreign companies as possible.
Our view is that through that way, we may be able to reduce the current unemployment levels from 80% to reasonable levels. However, we are aware that as we call for more companies to invest in the sector, the local companies will find the going getting tough. They cannot compete as many of them have no access to capital and are still using
However, on the part of policy makers in government, despite acknowledging the challenges of globalization in a similar way as company representatives, they seemed to be taking a cautionary approach.
Government is slowly realizing the importance of working closely with the private sector in order to create employment to millions of unemployed Zimbabweans.
160 antiquated equipment which raises their production costs and thus becoming less competitive on the global market place.”
Consumers When asked what could have led to the collapse of the clothing and textile companies in Zimbabwe, some answers obtained from the consumers included,
“……..because some of the companies were a bit more complacent to the possible impact of globalization,”
Connotations associated with one word, or through metaphors and figures of speech, were thus analyzed. For example, when asked how products from Asia, especially China had caused the local clothing and textile companies to collapse, some responses given were:
“...The problem rests with these Chinese business people who bring cheap, low quality products.”
In comparison, another response read,
”…….these Chinese traders are flooding the market with cheap and less durable clothes.”
This conveyed the impression that companies were complacent to some degree; only the degree of complacency differed.
The analysis of connotations also yielded valuable information and this was based on the understanding that even one word can convey a strong meaning.
The term Chinese business person is more palatable than a business trader. The point being driven home is that a trader only come to the country to look for opportunities and take the proceeds home while a business man decides on long term investments which qualifies him to be accorded the more respectable term, “ businessman”.
The results from the correlation analysis conducted also support the above qualitative responses
Source: Primary Data
5.1.1.4 Sustainable Marketing Strategies to adapt to globalization
To survive the impact of the globalization of markets and maintain their current status, the clothing and textile industries around the world need to respond by implementing strategies that improve their competitive status. The interview results revealed a number of strategies. Table 5.48 shows the responses.
161
Table 5.48: Sustainable Marketing Strategies to adapt to globalization
Respondent Response Comments/Analysis of Responses
University
graduate “The cry-baby mentality of most of our companies should cease forthwith or else time will overtake them. They continue to call for the government to intervene in the sector which is threatened by imminent collapse. Companies need to rethink marketing strategies which can help them survive once again.
Competition is good for us as consumers. We are therefore the biggest beneficiary of globalization.
On the part of companies, they have to find ways of competing on price and quality across the global market place. It is a level playing field as far as I am concerned....Anyone can play this game. One just has to follow the rules of the game...the formula is: quality plus price equal to success.”
Young Zimbabweans expect the government and the private sector to work together in creating employment. They seem to be less worried about the challenges faced by this particular sector.
Young
consumer “I really feel sorry for our local clothing and textile sector. It used to employ most people with low academic qualifications but now it is in a sorry state. It’s a double tragedy...people are out of employment as the companies find the going getting tough. I strongly urge the companies to wake up from their deep slumber and revise their marketing strategies by emphasizing on customer personal tastes and customization. As part of the young generation, customization is critical.
I go for tailor-made
clothes...look...unique...person alized to my taste. Price comes second.”
Some consumers urged companies in the sector to revise their marketing strategies by recognizing their tastes and preferences. They blamed companies for not adapting to the new methods of conducting business, especially the use of e-marketing. The response clearly demonstrated that some consumers are willing to buy local clothes as long as they designed to their tastes. This is especially so with affluent consumers who can afford pay high prices for clothes. Such consumers however, happen to be in the minority as the majority of consumers consider price first.
Government
Official “The clothing and textile industry is too fragmented. There are many small players who, because of their sheer size cannot compete with large companies. One sure strategy is for them to merge and create strong and
Government officials however, urged companies to integrate and also engage in cost cutting measures through acquisition of modern production equipment in order to remain viable.
162 formidable companies which can stand against the dominant companies from Europe and Asia.
Unfortunately many are unwilling to do that as they fear losing control of the new merged entity.”
Company
representative “Standardization is the key to our company’s moderate success. Gone are the days when products for exports were made of a high quality than those for the domestic market.
We are now living in a single global village ...a single market place. We therefore take these issues seriously. In order to achieve this, we have invested in meeting the global quality standards by ISO certifying our products which now allows us to compete on the global stage at an equal footing with companies from all over the world.”
The results of the interview results with company representatives’ emphasized the need for standardizing companies’ marketing strategies.
This implies for example, not differentiating the quality of products for the domestic market from those of international markets as both markets should be considered as one.
[The qualitative results correspond very well with the results obtained from the quantitative analysis. This is indicated by for example, the strong positive and highly significant association between marketing strategies to adapt to globalization and benefits of a standardized marketing strategy].
Source: Primary Data
5.1.1.4: Benefits of a standardized marketing strategy
The responses from the industry representatives as well as consumers confirmed the importance of a standardized approach to marketing in the global market place. It was cited as a key strategy for the success of the clothing and textile sector by both consumers as well as company representatives. Table 5.49 below show the results.
Table 5.49: Agreement Matrix: Benefits of a standardized marketing strategy
Respondent Response Comments/Analysis of Responses
Majority of respondents (87%).
“The major benefits of international marketing standardization include significant cost savings, consistency with customers, improved planning and distribution, and greater control across national borders. Technology in communication and transportation has homogenized markets around the globe. As a result, global consumers have emerged who demand high-quality products at low prices.”
The reality is that changes in the global marketplace have triggered a change in the way how companies compete among themselves in order to remain competitive. A major source of competitive advantage is achieved through cost leadership. Since standardization of products and international marketing strategy facilitates the realization of economies of scale in production and marketing, firms must pursue a standardized product and international marketing strategy to be successful in the global market.
163 Source: Primary Data
5.1.1.5: Benefits of coordination to create sustainable marketing strategies
Dysfunctional conflicts are one of the reasons that may create organizational boundaries by destroying cohesion and open communication between individuals in organizations. The interview results confirm this as many company executives highlighted the importance of coordination among company departments and staff within the organization. The results are shown in Table 5.50 below.
Table 5.50: Benefits of coordination to create sustainable marketing strategies
Respondent Response Comments/Analysis of
Responses
Senior companyExecutives “Coordination should be viewed as the glue that helps bind the organization together in the face of globalization. There are obvious benefits which can be reaped from synergies. In our company, coordination has managed to help improve productivity and the morale of our staff has been very high as we are achieving company targets.”
These above sentiments are well supported by the results from the quantitative analysis conducted where coordination of marketing was associated with high productivity and staff morale.
Source: Primary Data
5.1.1.5: Benefits of competitive integration/collaboration
The need for companies in the sector to integrate and coordinate strategies was highlighted in an interview with one of the Government officials as previously stated above and this was further strengthened by responses from some company representatives. Over 75% of the interviewed company representatives confirmed this assertion. The results are shown in Table 5.51 below.
164 Table 5.51: Benefits of competitive integration/collaboration
Respondent Response Comments/Analysis of
Responses
CompanyRepresentatives (75%)
“We are aware of the potential of the sector if only we were to unite and trade as a unit in order to mitigate the challenges of globalization. This strategy will allow knowledge transfer and thus allow some organizations to offset their weaknesses and create large competent companies. Our product unit costs would be reduced considerably. However, most companies in the sector are family owned businesses and thus entering into such arrangements often proves to be difficult if not impossible.”
These sentiments are well supported by the results from the quantitative analysis conducted where collaboration relationships plays a major role in resuscitating the sector.
Some company executives are well aware of the potential benefits achieved through co-alliances but since many of the companies are family or individual owed, collaborating with others is usually very difficult.
Source: Primary Data
5.1.1.7: Role of advanced modern technology in marketing strategies
The use of modern technology was noted as one of the key strategies which can help resuscitate the clothing and textile sector. Table 5.52 below shows the results.
Table 5.52: Role of advanced modern technology in marketing strategies
Respondent Response Comments/Analysis
of Responses
CEO- Textilecompany “We are using equipment bought in the 1950s to compete in the 21st century. It’s a tall order. We need to invest in modern technology albeit the serious financial challenges all the companies are facing. Technology helps improve product quality and reduce product costs in the long. It is my view that through acquisition of modern technology, our production efficiency will improve and thus enable us to compete with companies from Asia and Europe who continue to dominate our market space.”
He further went on to say:
“While it is much easier said, the real challenge is access to capital. Our local banks do not have enough financial resources for onward lending. Besides, there is a notable sense of scepticism on the potential of the sector from most bankers.
They believe that local companies have lost the battle already to foreign companies who are able to supply products at low process to the local market.”
Based on the discourse above, it is evident that technology is a key ingredient of strategy making in the current marketing
environment. These qualitative results are also well supported by the results obtained from the quantitative analysis since it was ascertained that modern technology reduces product cost
and product
availability.
Source: Primary Data
165
5.1.1.8. Impact of government policies on globalization and marketing strategies
Since companies operate in an environment governed by rules and regulations, the role of policy makers in influencing the marketing strategy was seen as an important factor to be considered. The results from in-depth interviews with policy makers from the three Ministries revealed that while government policies are crucial in the resuscitation of the sector, some of the officials seemed less engaged with policy issues.
For example, a full text analysis of responses from over 75% of the government officials interviewed implied that they were not part of government through the use of statements such as, “……..they need to craft policies which….,” instead of “we need to craft policies which….” The use of the third person reporting technique through the word “they” instead of “we”; since the officials are indeed representatives of government clearly demonstrated the fact that these officials might have had proffered some useful recommendations to government in the past though their suggestions might not have been taken up. The responses therefore suggested that even though they are indeed government employees, they somehow feel alienated from the government. Detailed responses are analyzed in Table 5.53 below:
Table 5.53: Impact of government policies on globalization and marketing strategies
Respondent Response Comments/Analysis of
Responses
SeniorGovernment official
“Several countries offer incentives to attract investment while also protecting local companies. For textiles and clothing producers these might include zero corporation and income taxes and zero import duties. However, while is a noble idea, it implies foregoing government revenue.” He went on further to state:
“The successful examples of EPZs (e.g.
Singapore, Dubai, and Ireland) suggest it is important to have fenced off areas with zone specific rules and regulations (e.g. help with customs clearance), infrastructure (purpose built infrastructure) and institutions (security organizations) which can be based on economies of scale and scope.
Results clearly show that government is caught between the need to promote FDI for job creation, it still has a duty to protect existing companies. The results from interviews with government officials supported the protection of the industry through effective regulatory frameworks with many citing the example of how South Africa has managed to serve its clothing and textile sector from total collapse through regulation and support.
Support through incentives was one such method mentioned.
Marketing Manager- Clothing retailer
“It is thus important to keep upgrading and acquiring new skills, or otherwise risk being locked into the less value added parts of the chain with fewer dynamic effects on growth in developing countries, and less potential for economic diversification.”
He further went further to state:
“A good marketing strategy without the support of policy makers will be ineffective in this global
Some respondents advocated for economic policies for upgrading and diversification citing examples of several Asian countries whose companies have remained competitive through upgrading their global textiles value chains and move into other higher value added activities.